Surge in global mobile spendĀ as programmatic 'grows up'

By AdNews | 2 June 2014

Advertising technology provider Turn has revealed its second global programmatic index, reporting that mobile is booming as advertisers around the world pour more budget into smartphone-focused campaigns. 

The Turn Advertising Intelligence Index (TAII) shows that marketers spent 109% more to buy mobile ads programmatically in the first four months of 2014, compared to the same period a year ago. 

“The data indicates advertisers are investing heavily in emerging regions and channels with competition and spend surging in mobile advertising across Asia Pacific and Europe,” said Cindy Deng, Managing Director, Asia-Pacific, Turn. “The company also said that advertisers sold on the benefits of display ads continue to ramp up budgets, and are getting smarter about harnessing data and targeting spending to find customers across all other channels.

The Turn Index, which measures price competitiveness in a number of industries, said the data shows increased understanding of the programmatic market is leading to less turbulence in pricing. In order of competitiveness, the top sectors are display, social, video and mobile.

“Significantly, the data shows that mature markets such as financial services and travel stabilising at high levels of competition and spend – with much less volatility – as marketers plan better for data-driven budget allocation,” Turn said in the report. 

The prices, or CPM’s, for programmatic ads, also rose in the past year. Social advertising CPM’s rose 64%, display was up 21%, mobile jumped 8%, while video was flat, as an increase in inventory suppressed pricing. 

The TAII is based on the Herfindahl-Hirschman Index (HHI), the global standard methodology for measuring the level of competition in the marketplace, to evaluate the advertising industry. The report says travel, telecommunications, and financial services are extremely mature markets with a multitude of players and a consistently high level of competition. 

Turns is focusing increasingly on the DSP side of its business. The company said it makes nearly 100 billion advertising decisions and analyzes more than 1.5 billion customer attributes. It claims to provide instant access to more than two trillion display, mobile, social, and video advertising impressions every month, with response times under 10 milliseconds.

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